Phantom Book Warehouse Ltd. distributes hardcover books to retail stores. At the end of May, Phantom’s inventory consists of 155 books purchased at $17 each. Phantom uses a perpetual inventory system.
During the month of June, the following merchandise transactions occurred:
June 1 Purchased 166 books on account for $17 each from Reader’s World Publishers, terms n/30.
3 Sold 126 books on account to The Book Nook for $26 each, with a cost of $17, terms 2/10, n/30.
5 Received a $187 credit for 11 books returned to Reader’s World Publishers.
8 Sold 129 books on account to Read-A-Lot Bookstore for $26 each, with a cost of $17, terms 2/10, n/30.
9 Issued a $208 credit memorandum to Read-A-Lot Bookstore for the return of 8 damaged books. The books were determined to be no longer saleable and were destroyed.
11 Purchased 127 books on account for $16 each from Read More Publishers, terms n/30.
12 Received payment in full from The Book Nook.
17 Received payment in full from Read-A-Lot Bookstore.
22 Sold 120 books on account to Reader’s Bookstore for $24 each, with an average cost of $16.30, terms 2/10, n/30.
25 Granted Reader’s Bookstore a $330 credit for 19 returned books. These books were restored to inventory.
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